Cost accounting: Theory and practice
Book Description
This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1917 Excerpt: ...accounts may be kept in the factory ledger in any one of three ways: (1) An account styled "Work in Process" may be kept, which will show in total what is shown in detail by the cost sheets. ...
MoreThis historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1917 Excerpt: ...accounts may be kept in the factory ledger in any one of three ways: (1) An account styled "Work in Process" may be kept, which will show in total what is shown in detail by the cost sheets. The account is debited with the material, labor and indirect expenses chargeable to the various departments, orders, jobs, or articles upon which operations have been begun, and is credited with the total cost of the part-finished or finished work. The balance of the account then represents the amount of work still in process, and should agree with the cost of the unfinished work as shown by the detailed cost sheets. (2) Accounts may be kept which will show the work in process in each operating department. When work is transferred to a department the Work in Process account of that department is debited with any cost incurred in previous operating departments, and to this is added the material, labor and overhead cost incurred in the department itself. When the product is transferred to another department the account is credited with the total cost, thus balancing as to that particular work. Any balance remaining shows the cost of the unfinished work in that department, and should agree with the detailed departmental cost sheets of jobs, orders, or articles. (3) Accounts may be kept with each order, job or article. The material, labor and indirect expense, as distributed, are debited to the order, job or article, and the account is credited with the total cost when the work is completed and transferred to stock. The balance of each account shows the costs incurred on the unfinished work. (5) Part-Finished Stock Account This account is debited with the cost of part-finished stock as far as it has been incurred, and credited with the cost of any part-finished st...
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